It will undertake an IPO of around 1,250 million euros with newly issued shares and another offer of a larger amount with existing titles
The centenary cosmetics firm Puig announced this Monday its intention to go public to raise more than 2,500 million euros through a newly issued public offer for the sale of shares (IPO) aimed at qualified investors and another offer for the sale of shares already existing.
Specifically, Puig has reported that it intends to request admission to trading of its shares on the Barcelona, Madrid, Bilbao and Valencia Stock Exchanges and their trading on the continuous market.
The offer will consist of an IPO of newly issued class B shares with the objective of raising approximately 1,250 million euros, and an offer of existing shares of a larger amount to be carried out by the company's majority shareholder, Puig, controlled by Exea, the patrimonial society of the Puig family.
Following the offer, the Puig family will retain a majority stake and the vast majority of the company's voting rights.
Goldman Sachs and JP Morgan SE will act as joint global coordinators and joint bookrunners for the offering, while Banco Santander, BofA Securities Europe, BNP Paribas and CaixaBank will act as joint bookrunners.
For their part, BBVA and Banco de Sabadell will act as 'co-lead managers' and, together with the above, will constitute what Puig has called 'managers' within the framework of the offer.
Puig will grant Goldman Sachs, acting as stabilization agent, a purchase option, on behalf of the managers, of over-allotment shares of up to 15% of the size of the offer.
WILL USE THE FUNDS FOR STRATEGIC INVESTMENTS AND REFINANCE PURCHASES
The company will use the net proceeds from the fundraising for general corporate purposes such as refinancing the acquisitions of additional stakes in Byredo and Charlotte Tilbury and funding any future strategic investments and capital expenditures.
Puig's share capital is made up of class A shares and class B shares. Each of the class A shares confers five votes and each of the class B shares confers one vote. Each class B share confers the same economic rights as each class A share.
In addition to the proposed offer, as part of the consideration that the company must pay for the acquisition of certain minority shareholders of their respective additional stakes in Byredo and Charlotte Tilbury, Puig will issue a certain number of class B shares for subscription by said minority shareholders. .
These newly issued class B shares will be in addition to the offer of new shares issued in the IPO and will be subscribed at the final price of the offer, but without forming part of it.
Puig and Exea, which controls the Puig family's holding company, will agree to certain lock-up commitments with the managers for a period between the date of signing the insurance contract and 180 calendar days after from the admission to trading of the shares.
The directors, senior managers and certain employees of the company will also agree with the managers certain disposal restrictions during a period between the date of signing the underwriting contract and 365 calendar days after admission to trading, but only with respect to to a certain number of class B shares.
In addition, the new minority shareholders will also be subject to disposition restrictions for a period of 180 calendar days with respect to the new class B shares they receive.
The process of approval of the offer prospectus by the National Securities Market Commission (CNMV) is ongoing and will include all the details of the offer and the planned calendar.
Puig has reported that Linklaters is his legal advisor in the offer and Cuatrecasas, Gonçalves Pereira, and Davis Polk
Goldman Sachs, before assuming the role of global coordinator of the offering, acted as exclusive financial advisor to Puig for the review of possible alternatives to open its capital to new investors, including a public offering of its shares.
MARC PUIG: A "DECISIVE STEP" IN THE COMPANY'S HISTORY
"Today's announcement is a decisive step in Puig's 110-year history (...) We believe that the balance of being a family company that at the same time is subject to market responsibility will allow us to compete better in the international market of beauty during the next phase of Puig's development. In addition, we believe that becoming a listed company will align our corporate structure with that of the best family companies in the Premium Beauty sector on a global scale, will help us attract and retain talent and will support the growth strategy of our portfolio and our brands," highlighted Marc Puig, executive president of the company.
Puig, founded in 1914, is dedicated to the fragrance and fashion, makeup and skin care segments. Headquartered in Barcelona, it operates in 32 countries with 17 brands, among which, in terms of revenue, Rabanne, Charlotte Tilbury and Carolina Herrera stand out.
The company obtained net income of 4,304 million euros in 2023, 19% more than in 2022, with double-digit growth in all segments and regions, exceeding its own objectives.
